As usual, trying to adopt something new is really is a frustration. And though Rails is about to be "a breakthrough in lowering the barriers of entry to programming" you will defenitely meet some errors that might stop you on your way.

First thing I met was: "[rake --tasks] rake aborted! no such file to load -- sqlite3/sqlite3_native".

The solution is really simple. Rake is telling you that it can't find a native library for sqlite. Well, just do what you've been told. Give it a sqlite.dll/.so (depends on OS you are). Put it in $ruby_home\bin.